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1© 2008 Alan Quayle
The Business Case for Opening the Network
Alan QuayleBusiness and Service Developmentwww.alanquayle.comwww.alanquayle.com/blogwww.linkedin.com/in/alanquayle
2© 2008 Alan Quayle
What’s Changed?
Business Case Discussion
DeveloperPerspective
3© 2008 Alan Quayle
What’s Changed?
4© 2008 Alan Quayle
Re-Launch
An Operator’s Product Development Process
Opportunity Identified
18-30 months
Market Research
Find Budget
New product development processLaunch
12-18 months
5© 2008 Alan Quayle
What’s Changed?
Expectations
6© 2008 Alan Quayle
What customers expect
6-12 months
Weekly
18-30 months
4 months
7© 2008 Alan Quayle
8© 2008 Alan Quayle
High StreetStores
SubsidizedPhones
NetworkControl
EcosystemControl
CustomerRelationship
Brand
BillingRelationship
9© 2008 Alan Quayle
Developer Perspective of the
Initiatives
10© 2008 Alan Quayle
Some Developer Quotes
AT&T and Verizon’s developer communities are broken. We’re no longer engaged, we’ve focused our
development efforts on iPhone, Android and Ovi because there is a clear path to cash (the customer).
An ADC is a large undertaking, Operators
must resource adequately to not repeat the problems
of the past.
We have spent 18 months working with Orange Partner and achieved nothing. Its simpler to
directly go to the relevant product manager
They (Orange Partner) select what apps their customers see!
How is that a developer community? Isn’t it the customer that decides; haven’t they learnt
even the basics from Apple!
Operators’ ADCs must solve the 4 key challenges facing
developers: distribution, discovery, predictable
process, and a clear way to make money
11© 2008 Alan Quayle
Developer Survey on Community Involvement
0% 20% 40% 60% 80% 100%
Apple AppStore
Windows Mobile Catalogue
Blackberry App World
Android Market
Orange App Shop
Nokia OviStore
Samsung Mobile Applications
Other Operator Store
WorkingWorked in past, no longerNever worked
50 mobile application developers surveyed in June 2009. Roughly 50:50 split between North America and Europe
Critical Exodus!
Developers are voting with their feet, makes the problem far greater than awareness, you’ll need to change their minds
12© 2008 Alan Quayle
13© 2008 Alan Quayle
Sample Developer Survey: Please rank the following initiatives by who best serve the needs of the developer community (UK focused developers)
Unsurprisingly Apple and Android are top. However, Nokia Ovi appears to be in the pack with the other operators
Good
OK
Bad
14© 2008 Alan Quayle
Mapping the Operator Developer Community Landscape
Enterprise App Consumer App
Enterprise IT Content
Three API
Cricket
Telus
BT Ribbit
AT&T
Vodafone Betavine
Sprint ADPVerizon
OrangeChinaMobile
TelenorCPA
Globe
Only Telus and BT Ribbit have a solid enterprise focus, Orange Partner, VDC and China Mobile are attempts at enterprise, they lack focus
15© 2008 Alan Quayle
Enterprise App Consumer App
Enterprise IT Content
Mapping the Consumer Electronics / Operating System Developer Community Landscape
Salesforce.comAppExchange
Sun
FacebookPalm
Nokia OviGetjar
AndroidHandango Samsung
MicrosoftiPhone
RIM
Apple has successfully executed a plan supporting enterprise app developers and internal enterprise IT developers over the passed year
16© 2008 Alan Quayle
Developer Community Magic QuadrantAbility toExecute
Completenessof Vision
VisionariesNiche
Challengers Leaders
Sun
getjar
Salesforce
Android
Apple
NokiaMicrosoft
Telenor/Globe
Handango
Palm
Samsung
BT
Telus3
Verizon
RIM
China Mobile
AT&T
Orange
Sprint
Vodafone
Operators have failed to compete in most western markets
17© 2008 Alan Quayle
Capabilities Application Developers Seek
• Single sign-on• Address Book API• Age Verification• Billing/Charging• Identity/Authentication• Location• Messaging• Profile API• File Browsing• Browser based API• Presence• SIP/VOIP/Call Control• Mobile Lookup• Connection status• Discoverability• Short codes• Plus lots and lots more……
8© 2008 Alan Quayle
Potential Telco API capabilities (from App Vendor Survey)
• Authentication & Single Sign-on• Presence (device, application, call state)
and Availability• Device Capabilities / Software• Location (accuracies and freshness),
Proximity, Heading, Speed• Preferences (policies or rules)• Context – a combination of presence,
location, device status, application status, meeting status (calendar), etc.
• Customer data (business intelligence)• Call Control• Messaging • Network address book• Group List Server (buddy lists)• Enterprise Mobilization• VoIP / SIP: tone insertion• Call Flow: ACD, IVR, CRM, Helpdesk• Charging / Billing• Call Log / Call events • Directory • Message Store
• Home Network Enabler• Content Delivery• Policy (Quality of Service)• IPTV enablers• IPTV STB enablers• Content Enablers• Collaboration Enablers• VoIP / SIP call control including invoking
supplementary services• Fulfilment and other BOSS capabilities• Digital Rights Management• Device Management• Local dial in number provisioning • Ringtone purchase integration• Video-ringtone platform• Subscription status• Mobile Video• CDR number frequency search• Calling Name dip
And the list goes on, much further on….. Prioritization is critical
High
Pop
ular
ity
Developers are excited about the many capabilities and information
an operator has available; but getting the community / business
basics is more important
18© 2008 Alan Quayle
Summary of Telus Developer Ingestion Process• Service Delivery Framework exposes
– Current APIs: messaging, location and presence• No website or online ingestion mechanism
– No developer community – works with targeted developersAs APIs are ParlayX most target developers already have interfaces build into their apps
– Consider it a form of collaborative innovation rather than open innovation
– NPD (New Product Development) had too many new service ideas to even think about without opening up the innovation process
• Developer requests come in through the traditional direct contact with the NPD group
• Process is designed to enable Telus to launch more apps and faster with a focus on SME (Small Medium Enterprise)– Achieved a 4 to 40 annual service launch improvement– Reduce cost by 75% in launching new apps
• Profitable within the first year of operation
Key in Telus’ decision making: too small to create a viable developer community, and more confidence in ability to innovate in enterprise services
19© 2008 Alan Quayle
Telus Going Forward
• Adopting OneAPI– Will work opportunistically with developers that have
innovative consumer applications or apps launched on competitors networks that it needs to emulate
• Expanding focus to large enterprise– Examining was to work with IT groups in large enterprise to
mobilize their processes• Does not plan to expand this model to consumer
– Telus is too small – Working with other Canadian operators in the OneAPI pilot
http://canada.oneapi.gsmworld.com/– Will let CE/OS app stores flourish as it drives data plan
adoption• Will expand APIs to other enterprise centric services and
enable mash-up capabilities with web-services– Very focused and in close co-operation with specific partners
Telus will partner for a consumer-focused developer community but look to build closer ties to IT groups in large enterprise customers
20© 2008 Alan Quayle
Business Case
21© 2008 Alan Quayle
Scenario Assumptions
• Converged operator in a mature internet centric market– 10 million customers 20:80 prepaid : post-pay split
• Year 1– Silo consolidation across messaging, location and
billing– Service Exposure business creation
• Year 2– Initial service exposure capabilities
Call control, enterprise mash-up, presence
• Year 3– Service exposure expansion
IPTV, streaming, and quality of service
22© 2008 Alan Quayle
Year 1 Analogy based on Real World Results
• BT implemented a service creation process transformation project• Identify and consolidate ‘common capabilities’
– 650 applications that run on top of its IP network • BT measured the benefits by the number of people that managed
these common capabilities. – 60% decrease in workforce, a reduction of >1000 staff.
• For the Scenario that would mean a saving of 500 staff – Equivalent annual cost of $40 million. – Typically ROI (Return on Investment) within 3 months
• Quoting Bhaskar Gorti, senior vice president and general manager of Oracle Communications SDP savings of:
– Development cost and time reduced by 50% – Reduced IT support cost of 30% – RFT (Right First Time) improvement of 30% – TTL (Time To Launch) improvement from 30 days to 1 day – Lowered provisioning costs by 30%
• In a small operator, SDP improves an operator’s ability to scale its partner management without increasing headcount
23© 2008 Alan Quayle
Example Year 2 and 3 Services (example third party applications available today)
• Communication enabled business processes– Communication enabled CRM (Voicesage, WorldxChange Communications/Sulaco
Technology, Callwave, search-to-phone, local SI)– Communications dashboard / widgets (WIT-Software, FeedHenry)
• Enterprise and Voice Mash-ups– eHealth, eGovernment (Agnity, Creative North, local SI)– Voice based messaging/meeting coord (Dial2do, Excendia)
• Content 2.0– Operator community widget (Useful Networks, AirG, PartyStrands, Movial)– UGC widgets (Shozu)– Place-shifting of subscribed and personal content (Quartics)
• Presence / Location– M2M, Integrated asset tracking (Kore Wireless, Vianet, Wireless Maingate)– Integrated Field Force Automation (Gearworks)– Location application aggregators (uLocate)– Community location/presence (Aka-Aki, Geo-Me, Gypsii, Locatrix, Sense Networks,
Wavemarket)– Enterprise messaging (Tango Networks, Elitnet, GinTel, OptiMobile, Mobile Max, Adomo)
• STB services– Widgets (HomeCamera, Miniweb)– TV 2.0 channels on STB (Hulu, Blinx)
• QoS enabler– Streaming to place shifting, TV 2.0, music/audio streaming, and other premium web
based streaming servicesResult: $30-75M revenue by Year 3
Just from ‘key services’ anything else is “jam” on top
24© 2008 Alan Quayle
Why Aren’t Your Customers Already Using These Applications?
25© 2008 Alan Quayle
Critical Issues in Opening the Network
• Copy Smart – don’t copy dumb– An operators business is not the same as Apple’s– Don’t be a “40 year old” dressed as a “20 year old”
• Opening the network impacts all lines of business not just trendy ‘2.0’ stuff– Make business an equal focus
• Its not a ground-breaking business case for revenues– But the strategic impact of doing nothing will be
fundamental to the business
Bottom line: Engaged customer access and a clear path to cash matters above all to developers
26© 2008 Alan Quayle
ServiceProvider
UtilityConnectivity
We’ve been talking about it for over a decade, but now its the customer that’s going to decide